Hi there, my blog today is going to help us on how to distinguish a legitimate business/investment to an investment scam. At the height of our economic growth, scammers are everywhere, they are spreading BIG time! Someone you are meeting today might be a wolf in a sheep’s clothing. In the last 20 years, people have lost more than P80 billion to investment scams in the country.
Most Filipinos are prone to scam because of lack of Financial Education, ignorance in investment, and greed. According to David Angway, a Registered Financial Planner,” Many people get into scam not because other people ask them to join a certain group, but because they are greedy inside.” They want to earn more in a very small amount of time. How can we spot a scammer?
Sign#1. If someone offered you an investment that sounds too good to be true.
Sign #2. Most likely if someone promises you a guaranteed return, you better run!
Sign #3. Focus more on recruiting than their products.
Sign #4. Focus more on quick and short-term return.
” For example, when someone promises you a high investment return in so short a time, ask him to prove it through third party validated studies, not just from testimonies of people who had bought the product. You may even ask him if he has a secondary license to sell investment securities from the SEC”, Efren Llamas,a Registered Financial Planner,says.